A-LevelAccountingCosting for materials and labour9706/12 · Feb/Mar 2020 · Q211 Mark

A mechanic carries out regular factory machine maintenance. He is paid an annual salary of $20000. Which type of cost is this?

Adirect labour cost

Bfixed factory cost

Cvariable factory cost

Dvariable administrative cost

✓ Correct answer

B: fixed factory cost

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Topic: Costing for materials and labour, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2020 Paper 1 Variant 2, question 21.

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